Split Gross More Pinched

There are several oil and gas blocks that are running out of contract. The government commissioned PT Pertamina to take over the blocks with which the contract was completed. However, the blocks are considered uneconomical if using a gross split share scheme. This is the reason for the Ministry of Energy and Mineral Resources to revise the Minister of Energy and Mineral Resources Regulation no. 8/2017 on the Gross Split Revenue Contract.

The 7 month old rule is currently in the revision phase. In the course of this, the new scheme aimed at boosting efficiency gets red notes from business actors as it is considered to be no more attractive than the current contract of cooperation, the cost recovery (PSC) production cost contract.

When the new Offshore Nonh West Java Offshore Block (ONWJ) was signed on January 18, 2017, the government stated that the eight blocks out of contract in 2017 and 2018 were assigned to Pertamina using a gross split scheme.

Following the signing of the contract, the ONWJ Block operator, which became the first working area with a split gloss scheme, proposed an additional share of profit sharing because there was still a cost burden that had not yet been accounted for in the revenue share. From 57.5 percent, oil shares rose to 73.5 percent and gas from 625 percent to 81 percent.

Profit sharing up to the end of 2017 is also obtained by PT Pertamina Hulu Energi ONWJ, operator of ONWJ Block, with the additional assumption of 5% EMR Minister's discretion due to the declining field economy, profit sharing factor of 5% oil price and 7.5% , while the cumulative factor of production is 3% for oil and gas.

Additional revenue sharing has not yet accommodated the realization of the use of local goods / services products and the tax burden due to tax breaks on gross splits yet to be published. President Director of Pertamina Upstream Energi Gunung Sardjono Hadi said that ONWJ Block no longer follows the new provisions in the revision of Regulation of Minister of Energy and Mineral Resources No. 8/2017 targeted published this month. According to him, the new beleid accommodating several changes will be applied to the block of contracts including those assigned to Pertamina.

Since the end of July, Pertamina has proposed incentives on new contracts in the eight blocks of contracts that it plans to sign in May 2017. Lack of space to gain profit in managing the block has finally made the signing of the contract null and void. Thus, the government revised the Regulation of the Minister of ESDM even though it has only been running for 7 months.

"For ONWJ already done no longer applied revision of Ministerial Regulation 8/2017. For the termination of new blocks 2018 onwards will use revision of Minister of Energy and Mineral Resources Regulation no. 8/2017, "he said.

Earlier, Deputy Minister of Energy and Mineral Resources Arcandra Tahar only mentioned that the beleid revision refers to the proposed business actors and because currently there is still a new work area offering. In fact, since a few weeks after the rule was issued, business actors have proposed suggestions on the new provisions.

MORE BETTER

He calls on the gross split this time, the contractor will get the field economy seen from the same internal rate of return (IRR) is even better and the cost recovery scheme. In addition, the investment calculated from the current (net present value / NPV) is also guaranteed to be the same and better than the current block.

He believes that it can be achieved because the reference data originally only taken from 10 field has been added to 22 existing field. In the meantime, for its application obligations on all new contracts the new green fields as well as the brown fields expired are unchanged.

Upstream Director of Pertamina Syamsu Alam said that until now it is still discussing a new contract for the block that will move to Pertamina. Challenges in the development of blocks with old fields aged over 30 years ie rapid rate of decline in production. Thus, it prioritizes the production of eight blocks are maintained.

"The challenge is definitely everything is mature fields so the main concentration is reducing decline [production] through the selection of methods and technologies that are effective and efficient," he said.

Analyst Hulu Wood Mackenzie Johan Utama said that the gross split scheme requires contractors to make efficiency so that the upstream oil and gas business can remain anchored. Further cost cuts will be faced with operator activities in the field in order to keep the safety aspects in line with existing regulations.

On the other hand, efforts to maintain production cost high so there is a chance that some fields can not be maintained because the production is too expensive. Steps to turn off or off the field will result in reduced production.

"When this happens, the fields will be turned off or disabled sooner and we will see a decline in production

which is faster, "he said.

The crucial point of managing the block-out of the contract, at the time of the decision and signing of the new contract, the time that is too narrow will make the contractor more difficult to set aside the budget. Legally, the new contractor has not been able to make an effort to slow down the rate of production decline if the new contract has not been signed. 

     In fact, the management of blocks older than 30 years requires a large cost because they have to achieve certain production targets. Moreover, there is a cost burden for post-operational obligations at the end of the contract to be borne.

IN INDONESIA

Gross Split Semakin Terjepit

Ada beberapa blok minyak dan gas bumi yang segera habis kontraknya. Pemerintah menugaskan PT Pertamina untuk mengambil alih blok-blok yang kontraknya sudah selesai tersebut. Namun, blok-blok tersebut dinilai tidak ekonomis jika menggunakan skema bagi hasil kotor atau gross split. Hal itu yang menjadi alasan Kementerian ESDM merevisi Peraturan Menteri ESDM No. 8/2017 tentang Kontrak Bagi Hasil Gross Split.

Peraturan yang hanya berumur 7 bulan itu saat ini dalam tahap revisi. Dalam perjalanannya, skema baru yang bertujuan untuk mendorong efisiensi itu mendapat catatan merah dari pelaku usaha karena dianggap tidak lebih menarik dari kontrak kerja sama yang berlaku saat ini, yakni kontrak bagi hasil (production sharing contract/PSC) pengembalian biaya operasi [cost recovery).

Pada saat kontrak baru Blok Offshore Nonh West Java (ONWJ) diteken pada 18 Januari 2017, pemerintah pun menyatakan bahwa delapan blok yang habis kontraknya pada 2017 dan 2018 ditugaskan kepada Pertamina dengan menggunakan skema gross split.

Setelah penandatanganan kontrak, operator Blok ONWJ yang menjadi wilayah kerja pertama dengan skema gloss split, mengajukan penambahan porsi bagi hasil karena masih terdapat beban biaya yang belum diperhitungkan dalam porsi bagi hasil. Dari semula bagi hasil minyak 57,5% naik menjadi 73.5% dan gas 625% menjadi 81%.

Bagi hasil yang berlaku hingga akhir 2017 ini pun diperoleh PT Pertamina Hulu Energi ONWJ, operator Blok ONWJ, dengan asumsi tambahan dari diskresi Menteri ESDM sebesar 5% karena keekonomian lapangan turun, faktor bagi hasil progresif dari harga minyak 5% dan gas 7,5%, sedangkan faktor kumulatif produksi sebesar 3% untuk minyak serta gas.

Tambahan bagi hasil belum mengakomodasi realisasi penggunaan produk barang/jasa lokal dan beban pajak karena beleid perpajakan tentang gross split belum terbit. Presiden Direktur Pertamina Hulu Energi Gunung Sardjono Hadi mengatakan bahwa Blok ONWJ tidak lagi mengikuti ketentuan yang baru pada revisi Peraturan Menteri ESDM No. 8/2017 yang ditarget diterbitkan bulan ini. Menurutnya, beleid baru yang mengakomodasi beberapa perubahan akan diterapkan pada blok habis kontrak termasuk yang ditugaskan kepada Pertamina.

Sejak akhir Juli, Pertamina telah mengusulkan insentif pada kontrak baru di delapan blok habis kontrak tersebut yang rencananya bisa diteken pada Mei 2017. Kurangnya ruang untuk mendapatkan keuntungan dalam mengelola blok tersebut akhirnya membuat penandatanganan kontrak batal dilakukan. Dengan demikian, pemerintah melakukan revisi Peraturan Menteri ESDM meski baru saja berjalan 7 bulan.

“Untuk ONWJ sudah done tidak lagi diterapkan revisi Peraturan Menteri 8/2017. Untuk terminasi blok baru tahun 2018 dan seterusnya akan menggunakan revisi Peraturan Menteri ESDM No. 8/2017,” ujarnya. 

Sebelumnya, Wakil Menteri ESDM Arcandra Tahar hanya menyebut bahwa revisi beleid mengacu pada usulan pelaku usaha dan karena saat ini masih berlangsung penawaran wilayah kerja baru. Padahal, sejak beberapa pekan setelah aturan itu terbit, pelaku usaha telah mengusulkan saran terhadap ketentuan baru itu.

LEBIH BAIK

Dia menyebut pada gross split kali ini, kontraktor akan mendapatkan keekonomian lapangan yang dilihat dari angka pengembalian investasi (internal rate of return/IRR) yang sama bahkan lebih baik dan skema cost recovery. Selain itu, investasi yang dihitung dari angka saat ini (net present value/NPV) juga dijamin akan sama dan lebih baik dari blok yang ada saat ini.

Dia meyakini bahwa hal itu bisa tercapai karena acuan data yang semula hanya diambil dari 10 lapangan telah ditambah menjadi 22 lapangan yang ada. Sementara itu untuk kewajiban penerapannya pada semua kontrak baru baik wilayah kerja baru (green fields) juga wilayah kerja yang habis kontrak [brown fields) tidak berubah.

Direktur Hulu Pertamina Syamsu Alam mengatakan bahwa hingga saat ini pihaknya masih membahas kontrak baru untuk blok yang akan beralih ke Pertamina. Tantangan dalam pengembangan blok dengan lapangan tua berusia lebih dari 30 tahun yakni cepatnya laju penurunan produksi. Dengan demikian, pihaknya mengutamakan agar produksi delapan blok tersebut tetap terjaga.

“Tantangannya sudah pasti semuanya adalah mature fields [lapangan tua] sehingga konsentrasi utamanya adalah mengurangi decline [penurunan] produksi melalui pemilihan metode maupun teknologi yang efektif dan efisien," katanya 

Analis Hulu Wood Mackenzie Johan Utama mengatakan bahwa skema gross split menuntut kontraktor untuk melakukan efisiensi agar pengusahaan hulu migas bisa tetap mengumungkan. Pemangkasan biaya selanjutnya akan dihadapkan dengan kegiatan operator di lapangan agar bisa tetap menjaga aspek keselamatan sesuai dengan regulasi yang ada.

Di sisi lain, upaya untuk menjaga produksi membutuhkan biaya tinggi sehingga terdapat peluang beberapa lapangan tidak bisa dijaga produksinya karena terlalu mahal biayanya. Langkah untuk mematikan atau menonaktitkan lapangan akan mengakibatkan menurunnya produksi.

“Bila ini terjadi, lapangan-lapangan tersebut akan dimatikan atau dinonaktifkan lebih cepat dan kita akan melihat penurunan produksi

yang lebih cepat,” katanya.

Titik krusial pengelolaan blok habis kontrak, pada waktu keputusan dan penandatanganan kontrak baru, waktu yang terlalu sempit akan membuat kontraktor semakin sulit untuk menyisihkan anggaran. Secara legal, kontraktor baru belum bisa melakukan upaya pelambatan laju penurunan produksi bila kontrak baru belum diteken. Padahal, pengelolaan blok berusia lebih dari 30 tahun membutuhkan ongkos besar karena harus mencapai target produksi tertentu. Terlebih, terdapat beban biaya untuk kewajiban pasca operasi pada masa akhir kontrak yang harus ditanggung.

Bisnis Indonesia, Page-32, Monday, August 28, 2017

Oil and gas reforms 20 awry for Jokowi

For President Joko “Jokowi” Widodo, reforming the oil and gas sector seems be like opening Pandora’s box; the harder he tries to clean up the mess, the more problems appear.

When Jokowi took office in late 2014, he vowed to eliminate what his administration called an “oil and gas mafia,” deemed to impede accountable and transformative policy-making.

By doing so, he aimed at better transparency and efficiency that could eventually bringing higher gains from the sector, traditionally the biggest contributor to state revenue with a more than 10 percent share each year.

However, after a series of structural overhauls in the Energy and Mineral Resources Ministry, regulatory authorities and state owned enterprises, within nearly three years of Jokowi’s presidency, the country has a bitter pill to swallow as it has proven hard to boost the competitiveness of its energy sector amid persisting low oil prices.

Investment in the oil and gas sector only reached US$4.8 billion in the first half of 2017, representing 21.6 percent of the fullyear target. Of the figure, contractors spent a mere $30 million on exploration activities, making it more difficult for the country to find new reserves against the backdrop of declining oil production in contrast to ever-growing domestic demand.

At the same time, state income from the sector stood at Rp 69.4 trillion ($5.2 billion), or 65.7 percent of the full-year estimate of Hp 105.5 -trillion, which when achieved, would represent one-third of what it earned in 2013 when oil prices were at a favorable level.

The Indonesian Employers Association’s (Apindo) head of energy and mineral resources division, Sammy Hamzah, attributed the current situation to the President’s mind-set when he began his tenure.

“As he vowed to eliminate the oil and gas mafia, many policies, including those set in ministerial decrees and government regulations [PP], have been drafted on the basis of mistrust ever since,” Sammy told 

He cited Energy and Mineral Resources Ministerial Decree No. 8/2017 on the gross-split sliding scale for new oil and gas production sharing contracts. Unlike its predecessor, the cost recovery scheme, the gross-split mechanism exempts the government from the obligation to reimburse contractors tor exploitation expenses .during the period of their contracts.

The gross-split scheme was introduced to curb soaring government spending on reimbursing investors from one year to another. The government reimbursed an average of $14.29 billion a year to all upstream oil and gas contractors within the 2010 to 2016 period. However, the Supreme Audit Agency (BPK) found that in 2014 and 2015 alone, contractors had marked up their exploitation costs by Rp 5.14 trillion and Rp 3.89 trillion, respectively.

“Indeed, the country will benefit more by applying a gross-split scheme. But the government should also consider the burdens contractors have to bear,” said Fahmy Radhi, an energy economic observer from the Yogyakarta-based Gadjah Mada University.

“Otherwise, this scheme will only make the investment climate less attractive.”

Indonesian Petroleum Association (IPA) executive director Marjolijn Wajong has repeatedly voiced the group’s concerns over the lack of two-way communication between oil and gas stake-holders and the Energy and Mineral Resources Ministry, which in turn caused prolonged uncertainties triggered by a number of policy flip-flops.

“In almost all discussions with the government, there is no narrative to ensure a policy will make [the oil and gas sector in] Indonesia more competitive," Marjolijn said.

In the BMI Mining Risk/Reward Index published recently by Fitch Group’s BMI Research, Indonesia only earned 25.4 points out of 100 in the category of mining regulation, which indicates the unattractiveness of its mining sector and this is attributable to its nationalistic policy stance. 

Jokowi himself has criticized some of its ministers over the issuance of some unfriendly policies that might have scared investors away. Fabby Tumiwa, the executive director of Jakarta-based think-tank Institute for Essential Services Reform (IESR), said there should be systematic efforts to identify all problems experienced by investors, particularly in the oil and gas sector, such as further reforms in the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas).

ln mid-August, SKK Migas, now led by former Corruption Eradication Commission (KPK) deputy chairman Amien Sunaryadi, started preparations to carry out internal reforms that will be done through the implementation of ISO 37001 anti-bribery management system next year.

Earlier in July, it also signed a memorandum of understanding with the Financial Transaction Reports and Analysis Centre (PPATK) for a joint effort to enhance transparency and prevent money laundering among stake-holders involved in the upstream sector.

"An overhaul at SKK Migas will certainly boost the investment climate and, hopefully, lead to more eflicient cost recovery,”

Jakarta Post, Page-13, Saturay, August 26, 2017

Being a Rente Hunter Target, Rated Premiums Must Be Abolished

Fuel oil (BBM) of premium types assessed should be immediately eliminated. The reason, these fuel products are often the main target of oil and gas mafia. According to a former member of the Oil and Gas Regulatory Reform Team Fahmy Radhi in Jakarta, Friday (25/8), the premium has not been sold in the international market for a long time, so it does not have a benchmark price. Because there is no such international market, so for the procurement of premium, Pertamina must memblending fuel oil (BBM) RON 92, so that the basic price becomes very high.

"The blending method makes the perfect target premium for oil and gas mafia in hunting rent. They mark up, so the Government buys premium at a very expensive price. To be affordable, the Government provides subsidies. So the government must bear the losses, "he said.

Worse yet, the subsidized Premium is smuggled again to Singapore, Malaysia, and Vietnam. Thus, the APBN funds used for the subsidy are robbed by oil and gas mafia in layers.

Elimination of Premium itself, according to Fahmy will not affect the socio-economic aspects. Especially before giving recommendations, the Oil and Gas Governance Reform Team also conducted a study.

The result, that the removal of Premium will not affect the social problem of economi. Because the abolition of RON 88 fuel will not affect the rate of inflation. This is different if the removed is Solar oil which is widely used for transportation and fishing.

"So, the removal of Premium is not a problem at all. Moreover, now Pertamina has issued a Pertalite, "said Fahmy.

Previously, Chairman of the National Oil and Gas Entrepreneurs Association (Hiswana Migas) Jakarta, Jabar, Banten, Juan Tarigan said it would be subject to the government's decision if Premium will later be completely removed.

"We're okay because it's purely business," Juan said.

But so far, Juan admitted there is no signal, either from the Government or Pertamina to reduce and remove the Premium.

"Not all gas stations can sell all BBM Variants. Of gas stations will choose where the most popular fuel. Nowadays people tend to choose Pertalite instead of Premium, "said Juan.

Juan assess, special SPBU is fully managed by individuals (DODO) and managed by individuals and Pertamina (CODO) will definitely choose the type of fuel sold. Meanwhile, Pertamina-managed gas stations (COCO) certainly prioritize services to provide all types of fuel. However, Pertamina is unlikely to allow all gas stations in one region to negate the premium.

IN INDONESIA

Menjadi Sasaran Pemburu Rente, Premium Dinilai Harus Dihapuskan

Bahan bakar minyak (BBM) jenis premium dinilai harus segera dihapuskan. Pasalnya, produk BBM ini sering menjadi sasaran utama mafia migas. Menurut mantan anggota Tim Reformasi Tata Kelola Migas Fahmy Radhi di Jakarta, Jumat (25/8), premium sudah lama tidak dijual di pasar internasional, sehingga tidak memiliki harga patokan. Karena tidak ada di pasar internasional itu pula, maka untuk pengadaan premium, Pertamina harus memblending bahan bakar minyak (BBM) RON 92, sehingga harga pokoknya menjadi sangat tinggi.

“Cara blending tersebut menjadikan premium sasaran yang sempurna untuk mafia migas dalam berburu rente. Mereka melakukan mark up, sehingga Pemerintah membeli premium dengan harga sangat mahal. Agar harganya terjangkau, Pemerintah memberikan subsidi. Sehingga sesungguhnya Pemerintah harus menanggung kerugian,” kata dia.

Parahnya lagi, Premium yang disubsidi tersebut diselundupkan lagi ke Singapura, Malaysia, dan Vietnam. Dengan demikian, dana APBN yang dipergunakan untuk subsidi tersebut, dirampok oleh mafia migas dengan cara berlapis-lapis.

Penghapusan Premium itu sendiri, menurut Fahmy tidak akan berdampak terhadap aspek sosial ekonomi. Apalagi sebelum memberikan rekomendasi, Tim Reformasi Tata Kelola Migas juga melakukan kajian.

Hasilnya, bahwa penghapusan Premium tidak akan berpengaruh terhadap masalah sosial ekonomi. Sebab penghapusan BBM RON 88 tersebut tidak akan mempengaruhi tingkat inflasi. Hal ini berbeda jika yang dihapus adalah minyak Solar yang memang banyak dipergunakan untuk transportasi dan nelayan. 

“Jadi, penghapusan Premium sama sekali tidak masalah. Apalagi, sekarang Pertamina sudah mengeluarkan Pertalite,” kata Fahmy.

Sebelumnya, Ketua Himpunan Wiraswasta Minyak dan Gas Bumi Nasional (Hiswana Migas) Wilayah DKI Jakarta, Jabar, Banten Juan Tarigan mengatakan akan tunduk pada keputusan pemerintah jika nantinya Premium dihapus total. 

“Kita oke saja karena murni bisnis,” kata Juan.

Namun sejauh ini, Juan mengaku belum ada sinyal, baik dari Pemerintah maupun Pertamina untuk mengurangi dan menghapus Premium. 

“Tidak semua SPBU bisa menjual semua Varian BBM. Tentu SPBU akan memilih mana BBM yang paling laris. Saat ini masyarakat cenderung memilih Pertalite daripada Premium,” kata Juan.

Juan menilai, khusus SPBU yang dikelola penuh oleh individu (DODO) dan dikelola individu dan Pertamina (CODO) pasti akan memilih jenis BBM yang dijual. Sedangkan SPBU yang dikelola penuh Pertamina (COCO) tentu mengutamakan pelayanan untuk menyediakan seluruh jenis BBM. Namun Pertamina tidak mungkin membiarkan seluruh SPBU dalam satu wilayah meniadakan premium.

Investor Daily, Page-9, Saturday, August 26, 2017

PGN Ready to Supply Gas 80 MMBTU Per Day

PT Perusahaan Gas Negara Tbk (PGN) is ready to supply gas amounting to 80 million british thermal units per day for industrial estates in Lampung. This makes Lampung as one of the cities ready to welcome investors who want to invest.

Director of PGN Infrastructure and Technology Dilo Seno Widagdo said that there are not yet many big industries that are developing in Lampung. Currently, gas consumers in this region of the industrial sector are only 23 customers, namely three hotels, three power plants PT PLN and crop processing industries. In addition to PLN, gas consumption from other industries is still quite small.

The average gas consumption in Lampung is currently only 22 mmbtu per day. The reason, natural gas still have to compete with other fuels are cheaper, one of them firewood.

"Whereas our supply capacity can be up to 80 mmbtu per day," he said

This condition makes Lampung as a good location to invest. Not only able to guarantee gas supply, PGN also has a reliable gas infrastructure from transmission pipeline to distribution in Lampung. The Company already has a network that passes through three areas that will be used as an industrial area, one of which is in Tanjung Bontang.

Not only the industry, it is also ready if PLN plans to build a new power plant in Lampung. The availability of PGN gas is expected to supply the needs of gas power plants up to 200 megawatt (MW) capacity. PGN currently supplies an average gas of around 20 mmbtu per day for three PLN power plants with a total capacity of 160 MW.

"But it depends on whether PLN wants to build a power plant or not. But we are ready for the infrastructure, "Dilo said.

The gas source for Lampung Region comes from gas field in South Sumatera. However, as a reserve, PGN also operates a floating storage and regasification unit (FSRU) in Lampung. The main purpose of building LNG receiving terminal in Lampung is to meet the gas needs in Lampung, Banten, Java West and surrounding areas.

Not only that, as a Natural Gas BUMN, PGN was also given the responsibility to build a natural gas network for households in Bandar Lampung, Lampung Province. The gas network project in Bandar Lampung with a total of 204 kilometers (km) is targeted for completion by the end of 2017.

Construction of the gas network is planned for 10,321 home connections in Lampung. PGN is also in charge of operating it. The government also commissioned PGN to distribute and install converter kits in official vehicles and city transportation of 116 units. The distribution of the converter kit is part of the Government plan targeting 5,000 converter kit units to be distributed to the public this year.

Across Indonesia, PGN has built and managed over 7,270 kilometers of natural gas pipelines or 80% of Indonesia's natural gas pipeline infrastructure. PGN has also supplied more than 1,658 large industries and power plants, more than 1,930 commercial customers, and 204,000 household customers spread across 19 districts / cities in 12 provinces throughout Indonesia.

IN INDONESIA

PGN Siap Pasok Gas 80 MMBTU Per Hari

PT Perusahaan Gas Negara Tbk (PGN) siap memasok gas sebesar 80 juta british thermal unit per hari untuk kawasan industri di Lampung. Hal ini menjadikan Lampung sebagai salah satu kota yang siap menyambut investor yang ingin menanamkan modal.

Direktur lnfrastruktur dan Teknologi PGN Dilo Seno Widagdo mengatakan, belum banyak industri besar yang berkembang di Lampung. Saat ini, konsumen gas di wilayah ini dari sektor industri hanya sebanyak 23 pelanggan, yakni tiga hotel, tiga pembangkit listrik PT PLN  serta industri pengolahan hasil bumi. Selain PLN, konsumsi gas dari industri lain masih cukup kecil.

Rata-rata konsumsi gas di Lampung saat ini hanya sebesar 22 mmbtu per hari. Pasalnya, gas bumi masih harus bersaing dengan bahan bakar lain yang lebih murah, salah satunya kayu bakar. 

“Padahal kemampuan pasok kami bisa sampai 80 mmbtu per hari,” kata dia

Kondisi ini menjadikan Lampung sebagai lokasi yang bagus untuk berinvestasi. Tidak hanya mampu menjamin pasokan gas, PGN juga memiliki infrastruktur gas yang handal dari pipa transmisi hingga distribusi di Lampung. Perseroan telah memiliki jaringan yang melewati tiga wilayah yang akan dijadikan kawasan industri, salah satunya di Tanjung Bontang.

Tidak hanya industri, pihaknya juga siap jika PLN berencana membangun pembangkit listrik baru di Lampung. Ketersediaan gas PGN diperkirakannya bisa memasok kebutuhan gas pembangkit listrik hingga kapasitas 200 megawatt (MW). Saat ini PGN memasok gas rata-rata sekitar 20 mmbtu per hari untuk tiga pembangkit listrik PLN dengan total kapasitas 160 MW.

“Tetapi itu tergantung PLN mau membangun pembangkit listrik atau tidak. Tetapi kami sudah siap infrastrukturnya,” kata Dilo.

Sumber gas untuk Wilayah Lampung ini berasal dari lapangan gas di Sumatera Selatan. Namun, sebagai cadangan, PGN juga mengoperasikan unit penampungan dan regasifikasi terapung (floating storage and regasification unit/FSRU) di Lampung. Tujuan utama pembangunan terminal penerima LNG di Lampung ini adalah untuk memenuhi kebutuhan gas di Wilayah Lampung, Banten, Jawa Barat dan sekitarnya.

Tidak hanya itu, sebagai BUMN Gas Bumi, PGN juga diberikan tanggung jawab untuk membangun jaringan gas bumi untuk rumah tangga di Bandar Lampung, Provinsi Lampung. Proyek jaringan gas di Bandar Lampung dengan total sepanjang 204 kilometer (km) tersebut ditargetkan selesai seluruhnya pada akhir 2017.

Pembangunan jaringan gas ini rencananya untuk 10.321 sambungan rumah di Lampung. PGN juga bertugas untuk mengoperasikannya. Pemerintah juga menugaskan PGN untuk membagikan sekaligus memasang konverter kit di kendaraan dinas dan angkutan kota sebanyak 116 unit.

Pembagian konverter kit ini bagian dari rencana Pemerintah yang menargetkan sebanyak 5.000 unit konverter kit dapat dibagikan ke masyarakat pada tahun ini.

Di seluruh Indonesia, PGN telah membangun dan mengelola lebih dari 7.270 kilometer pipa gas bumi atau setara 80% infrastruktur pipa gas bumi Indonesia. PGN juga telah memasok lebih dari 1.658 industri besar dan pembangkit listrik, lebih dari 1.930 pelanggan komersial, dan 204.000 pelanggan rumah tangga yang tersebar di 19 kabupaten/kota di 12 provinsi di seluruh Indonesia.

Investor Daily, Page-9, Saturday, August 26, 2017

Kepodang Study Awaited

The government is still awaiting the results of the study of the Center for Oil and Gas Technology Research and Development related to the subsurface layers of Kepadang Field after a drastic reduction in gas production from the block.

Kepodang Field, Muriah Block is operated by Petroliam Nasional Berhard (Petronas) with 80% ownership. Meanwhile, the remaining 20% ​​is owned by PT Perusahaan Gas Negara Tbk. Through Saka Energi Muriah Limited.

So far, the gas field located on the northern coast of Central Java is distributing gas to the power plant owned by PT Perusahaan Listrik Negara, the steam gas power plant (PLTGU) Tambak Lorok Semarang.

However, current field conditions show that the gas from Kepodang Field is unable to meet the contractual disbursement. Under the contract, Kepodang Field will supply 116 million cubic feet of gas per day (MMscfd) for 12 years to

PLTGU Tambak Lorok- Semarang Central Java

Senior Manager of Corporate Affairs & Administration Petronas Carigali Andiono Setiawan previously said that his side has declared a force majeure condition in Kepodang Field on June 8, 2017.

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar said that until now Kepodang Iapangan, Block Muriah still deliver gas to PLTGU Tambak Lorok. However, the volume of gas that flows does not conform to the contract of sale and purchase of gas Which was signed between Petronas and PT Perusahaan Listrik Negara

According to him, Lemigas conducted a 1-month-1.5 month study since the operator declared a predictor of Arcandra's predecessor. This month the study on the subsurface condition of Kepodang Field can be completed.

Thus, he has not been able to estimate some possible actions such as the amendment of cooperation contracts or other actions, particularly related to gas sale agreement between Petronas and PLN.

Under the gas sale and purchase agreement (PJBG), Kepodang Field will supply 116 MMscfd gas for 12 years to PLTGU Tambak Lorok. Initial gas field production of Kepodang begins in September 2015.

"We see first the results of subsurfacenya, have complete data, after we see what the next action," he said, Thursday

(24/8).

According to him, this drastically decreased production could have occurred because of the performance of subsurface layer that is not as expected. He considered that, if not yet in production, data obtained from exploration activities such as seismic surveys may not yet reflect actual circumstances.

"How sophisticated are we analyzed exploration, seismic, 3D seismic, appraisal well, all kinds of in-drilling, but if not yet in production, the data may not be accurate," he said.

DRASTIC DOWN

Deputy for Oil and Gas Operations Migas Fataryani Abdurahman said that as a result of the force of the commitment of 116 MMscfd, current gas is channeled at 70 MMscfd. Grand force alone is a condition that occurs outside the control of the contractor

Affecting operations in the Field.

With the majestic condition that has been submitted Petronas Carigali Muriah Limited as a supply operator will be distributed until 2018. Gas Kepodang sold for US $ 4.61 per MMBtu with escalation of 8.6% per year to ITok Tambak power plant of 1,000 megawatts. Gas that generates 600 MW of electricity is channeled through gas pipeline 1 Kepodang-Tambak Lorok-Semarang, Center Java

"It still supplies up to the end of 2018. Only today the supply amount of about 70 MMSCFD is well below the contract that should have been 116 MMscfd," he said.

With the declaration of power from the operator will be the basis for revising the contract of sale and purchase of gas. However, he mentioned that it is worth awaiting opinions and the Center for Oil and Gas Research and Technology (Lemigas). In accordance with the gas sale and purchase agreement, Lemigas has been appointed as an independent party entitled to give opinion in the event of a force majeure.

"Thus, the declaration of the powers is needed to revise the PJBG. That is to prove it, "he said.

Director of Fuel Oil and Gas PLN Chairani Rahmatullah said that currently it still receives supplies from Kepodang Field even though it is below the agreed volume in the contract. Until now the supply of Kepodang has not been decided yet.

PLN is supposed to get 116 MMscfd for 12 years since the contract was signed in 2015. However, due to the force of majeure, the contract is likely to be terminated or renegotiated.

IN INDONESIA 

Kajian Kepodang Ditunggu

Pemerintah masih menunggu hasil kajian Pusat Penelitian dan Pengembangan Teknologi Minyak dan Gus Bumi terkait dengan lapisan bawah permukaan Lapangan Kepadang setelah terjadi penurunan produksi gas dari blok itu secara drastis.

Lapangan Kepodang, Blok Muriah dioperasikan oleh Petroliam Nasional Berhard (Petronas) dengan kepemilikan saham 80%. Sementara itu, sisa saham sebesar 20% dimiliki oleh PT Perusahaan Gas Negara Tbk. melalui Saka Energi Muriah Limited.

Selama ini, lapangan gas yang terletak di pantai utara Jawa Tengah itu menyalurkan gas ke pembangkit milik PT Perusahaan Listrik Negara, yaitu Pembangkit Listrik Gas Uap (PLTGU) Tambak Lorok Semarang.

Namun, kondisi di lapangan saat ini menunjukkan bahwa gas dari Lapangan Kepodang tidak bisa memenuhi penyaluran sesuai kontrak. Dalam kontrak, Lapangan Kepodang akan menyuplai gas sebanyak 116 juta kaki kubik per hari (MMscfd) selama 12 tahun ke

PLTGU Tambak Lorok- Semarang Jawa Tengah

Senior Manager Corporate Affairs & Administration Petronas Carigali Andiono Setiawan sebelumnya mengatakan bahwa pihaknya telah menyatakan kondisi kahar (force majeure) di Lapangan Kepodang pada 8 Juni 2017.

Wakil Menteri Energi dan Sumber Daya Mineral (ESDM) Arcandra Tahar mengatakan bahwa hingga saat ini Iapangan Kepodang, Blok Muriah masih menyalurkan gas ke PLTGU Tambak Lorok. Namun, volume gas yang dialirkan tidak sesuai dengan kontrak jual beli gas

yang diteken antara Petronas dan PT Perusahaan Listrik Negara

Menurutnya, Lemigas melakukan kajian selama 1 bulan-1,5 bulan sejak operator menyatakan kondisi kahar Arcandra memperkirakan. pada bulan ini kajian tentang keadaan bawah permukaan Lapangan Kepodang bisa selesai.

Dengan demikian, dia belum bisa memperkirakan beberapa tindakan yang mungkin dilakukan seperti amendemen kontrak kerja sama maupun melakukan tindak lain khususnya terkait perjanjian jual beli gas antara Petronas dan PLN.

Dalam perjanjian jual beli gas (PJBG), Lapangan Kepodang akan menyuplai gas 116 MMscfd selama 12 tahun ke PLTGU Tambak Lorok. Produksi perdana gas Lapangan Kepodang dimulai pada September 2015.

“Kita lihat dulu hasil dari subsurfacenya, punya data yang lengkap, setelah kita lihat action selanjutnya apa," ujarnya, Kamis

(24/8).

Menurutnya, produksi yang menurun drastis ini bisa saja terjadi karena performa lapisan bawah permukaan yang tidak sesuai harapan. Dia menilai bahwa bila belum berproduksi, data yang didapatkan dari kegiatan eksplorasi seperti survei seismik bisa saja belum mencerminkan keadaan aktualnya.

“Seberapa canggih pun kita dianalisis eksplorasi, seismik, 3D seismik, appraisal well, macam-macam di-drilling, tapi kalau belum berproduksi, datanya mungkin belum akurat benar," katanya.

TURUN DRASTIS

Deputi Operasi SKK Migas Fataryani Abdurahman mengatakan bahwa sebagai akibat kondisi kahar dari komitmen 116 MMscfd, saat ini gas yang disalurkan sebesar 70 MMscfd. Kondisi kahar sendiri merupakan kondisi yang terjadi di luar kendali kontraktor yang memengaruhi operasi di Lapangan.

Dengan kondisi kahar yang telah disampaikan Petronas Carigali Muriah Limited sebagai operator pasokan akan disalurkan hingga 2018. Gas Kepodang dijual seharga US$ 4,61 per MMBtu dengan eskalasi 8,6% per tahun ke PLTGU Tambak Iorok sebesar 1.000 megawatt. Gas yang menghasilkan listrik 600 MW itu disalurkan melalui ruas pipa gas 1 Kepodang-Tambak Lorok Semarang, Center Java

“Masih memasok sampai dengan akhir 2018. Hanya saat ini jumlah suplai sekitar 70 MMSCFD jauh di bawah kontrak yang seharusnya 116 MMscfd,” katanya.

Dengan deklarasi kahar dari pihak operator akan menjadi dasar untuk melakukan revisi kontrak jual beli gas. Namun, dia menyebut bahwa perlu menanti opini dan Pusat Penelitian dan Teknologi Minyak dan Gas Bumi (Lemigas). Sesuai dengan perjanjian jual beli gas, Lemigas telah ditunjuk sebagai pihak independen yang berhak memberikan opini dalam hal terjadinya kahar.

“Jadi, deklarasi keadaan kahar ini diperlukan untuk merevisi PJBG. Justru itu untuk membuktikan,” katanya.

Direktur Bahan Bakar Minyak dan Gas PLN Chairani Rahmatullah mengatakan bahwa saat ini pihaknya masih menerima pasokan dari Lapangan Kepodang meskipun di bawah volume yang telah disepakati dalam kontrak. Hingga saat ini nasib pasokan dari Kepodang belum diputuskan.

PLN seharusnya mendapat pasokan 116 MMscfd selama 12 tahun sejak kontrak diteken 2015. Namun, karena kondisi kahar, kontrak berpeluang diakhiri atau negosiasi ulang. 

Bisnis Indonesia, Page-32, Friday, August 25, 2017

Increase Gas Sales Price Benefits State

Minister of Energy and Mineral Resources lgnasius Jonan said the gas price change from Conoco Phillips in Grissik, South Sumatra to PT Perusahaan Gas Negara (PGN) Tbk in Batam, Riau Islands will increase state revenue.

"Changes in gas prices (Conoco Phillips to PGN) in addition to maintaining the business fairness of oil and gas upstream and midstream will also increase state revenues. This is positive, "said Jonan at the Office of the Ministry of Energy and Mineral Resources, Jakarta, Wednesday (23/8) night as submitted through

Release in Jakarta.

According to him, based on further calculations, the additional state revenue due to Conoco Phillips gas price change to PGN from US $ 2.6 to US $ 3.5 per MMBTU for volume 22.73 BBTUD will reach US $ 4.3 million for Contract period July 2017 to November 2018.

"The additional state revenue of US $ 4.3 million is greater than the additional revenue potential of Conoco Phillips of US $ 2.3 million in the same period," he said.

Jonan also said the price change decision was taken on the basis of fair calculation, on the principle of fair sharing between operators upstream with operators in the midstream.

Meanwhile, the price from PGN to the consumer is fixed and unchanged. This, according to Jonan, shows the government's consistency in maintaining affordable gas prices for the community.

"The price change is only on the supply side of Conoco Phillips South Sumatra gas price to PGN Batam, while the price in the consumer remains, this is important, prices in end users such as industry and power plants are not rising, thus encouraging the national economy

And local. This is the realization of energy as a development capital, "he said.

Executive Director of Indonesia Resources Studies (IRESS) Marwan Batubara criticized the government's decision to approve Conoco Phillips's gas price increase. Moreover, this price increase causes state companies to experience a loss of Rp 240 billion until the end of the contract period in 2019.

Different opinions come from energy observer Mamit Setiawan which assesses the change in gas selling price is reasonable and not done suddenly. The process of price renegotiation has been running since 2012 and done with business to business mechanism.

IN INDONESIA

Kenaikan Harga Jual Gas Untungkan Negara

Menteri ESDM lgnasius Jonan mengatakan perubahan harga gas dari Conoco Phillips di Grissik, Sumatera Selatan ke PT Perusahaan Gas negara (PGN) Tbk di Batam, Kepulauan Riau akan menambah penerimaan negara.

“Perubahan harga gas (Conoco Phillips ke PGN) selain menjaga fairness bisnis migas di hulu dan midstream juga akan meningkatkan penerimaan negara. Ini positif,” ujar Jonan di Kantor Kementerian ESDM, Jakarta, Rabu (23/8) malam seperti disampaikan melalui

rilisnya di Jakarta.

Menurut dia, berdasarkan kalkulasi lebih lanjut, tambahan penerimaan negara akibat perubahan harga gas Conoco Phillips ke PGN dari US$ 2,6 menjadi US$ 3,5 per MMBTU untuk volume 22,73 BBTUD, akan mencapai sebesar US$ 4,3 juta untuk periode kontrak Juli 2017 sampai November 2018.

“Tambahan penerimaan negara US$ 4,3 juta tersebut lebih besar dari potensi tambahan pendapatan Conoco Phillips sebesar US$ 2,3 juta periode yang sama,” ujarnya.

Jonan juga mengatakan keputusan perubahan harga itu diambil didasarkan unsur perhitungan yang berkeadilan, dengan prinsip adanya pembagian yang adil antara operator di hulu dengan operator di midstream.

Sementara itu, harga dari PGN ke konsumen diputuskan tetap dan tidak mengalami perubahan. Hal ini menurut Jonan, menunjukkan konsistensi pemerintah dalam menjaga harga gas yang terjangkau untuk masyarakat.

“Perubahan harga itu hanya di sisi supply yaitu harga gas Conoco Phillips Sumatera Selatan ke PGN Batam, sedangkan harga di konsumen tetap, ini yang penting, harga di end user seperti industri dan pembangkit listrik tidak naik, sehingga mendorong ekonomi nasional

dan setempat. lni perwujudan energi sebagai modal pembangunan,” ujarnya.

Direktur Eksekutif Indonesia Resources Studies (IRESS) Marwan Batubara mengkritisi keputusan pemerintah menyetujui kenaikan harga jual gas Conoco Phillips itu. Apalagi kenaikan harga ini menyebabkan perusahaan negara mengalami kerugian Rp 240 miliar hingga berakhirnya masa kontrak pada 2019.

Pendapat berbeda datang dari pengamat energi Mamit Setiawan yang menilai perubahan harga jual gas itu wajar dan tidak dilakukan secara tiba-tiba. Proses renegosiasi harga telah berjalan sejak 2012 dan dilakukan dengan mekanisme business to business.

Media Indonesia, Page-17, Friday, August 25, 2017

Indonesia faces uphill struggle to lift oil and gas output

Indonesia needs to raise the ante to sustain its oil and gas production in the next decade amid unfavorable circumstances in the

sector.

BMI Research, a unit of Fitch Group, has sent a strong warning to Indonesia that the countrys crude oil and natural gas output is expected to slide by 1.7 percent and 4 percent. respectively, each year until 2021 because of weak oil prices and slow development of new projects. 

"Indonesia’s crude oil and natural gas production is set to see firm declines over the next five years amid slowing investment into new projects to counter natural declines at mature assets,” BMI Research says in a recently published report.

“Moreover, although we believe oil prices will improve over the coming years, the gradual pace of the rebound, particularly over the next two years, will continue to drag on firms’ appetite for costly output maintenance works at aging fields.”

The report predicts that national oil production will start to decrease by 1.5 percent year-on-year (yoy) to 800,000 barrels of oil per day (bopd) in 2018 from 812,000 bopd this year, which is in line with the projection in the government’s proposed 2018 state budget.

Similarly natural gas production is expected to drop by 10 percent next year, caused by large output losses from Indonesia’s biggest gas source, the Mahakam block in East Kalimantan.

Global oil prices have not rebounded swiftly since their dramatic fall more than two years ago. Benchmark West Texas Intermediate (WTI) reached US$ 48.21 per barrel on Thursday afternoon, up only slightly from $ 47.33 last year. Fellow benchmark Brent traded at $52.39.

However, weak crude prices only play a minor role in the rapidly declining production rate, as the domestic regulatory environ-

ment primarily supports low-cost and low-risk projects, instead of new exploration and exploitation projects that could maintain the production rate.

Giant gas projects, such as the Masela block and the East Natuna block, have been stalled because of disputes between contractors and the government over the project concept and the domestic market obligation (DMO), respectively

Moreover, investment in the sector reached S399 billion in the first half of this year, which is only 28.84 percent of this year’s target of $13.8 billion, according to data from the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas).

The dwindling production may force the country to rely heavily on imports. Despite the grim outlook the government still maintains that Indonesia is unlikely to start importing gas by 2025.

The government is not blind to the fact that investors are shying away from the upstream sector. In January, the government introduced a new scheme in production-sharing contracts (PSC), namely the gross split scheme, to guarantee fiscal iiexibility in new or high-risk projects, but the new scheme has received an undesirable response from investors and experts.

Energy and Mineral Resources Minister Arcandra Tahar said that while the scheme was initially composed based on case studies of existing fields, a revised one would consider the overall process.

“We previously carried out the analysis based only on existing fields. However, we have to look at a full circle from exploration until commissioning, since there have been many suggestions that the NPV [net present value] be the same as the cost recovery PSC,” he said, referring to the former PSC scheme.

The government is also drafting a new regulation on tax treatment under the gross-split scheme, slated to supplement Government Regulation (PP) No. 27/2017 on the same issue for the cost recovery scheme.

Separately, Wood Mackenzie Asia upstream research director Andrew Harwood said investors might still be cautious, despite any impending positive policy changes, as the 2001 Oil and Gas Law was still under revision.

“The gross split regime, by removing the cost recovery system, presents a new upstream frame-work. Investors will be keen to see if the new regime can be accommodated into a new oil and gas law," he told

Jakarta Post, Page-17, Friday, August 25, 2017

July, Pertamina EP Asset 3 Oil Production Reaches 10,000 Bph

As of July, the average production of PT Pertamina EP Asset 3 is around 10,000 barrels per day (bpd) for oil and gas production averages 300 million cubic feet per day / mmscfd. With a number of development wells, it is expected that by the end of this year oil production will increase.

"Until the end of the year we expect oil production to rise to 11,000 bpd, while gas in the range of 300 mmscfd," said GM PT Pertamina EP Asset 3 Wisnu Hindadari, in a statement received on Thursday (24/8).

He said Pertamina EP Asset 3 production in July was contributed by Tambun field about 2,200 bpd of oil and 50 mmscfd of gas. While Field Subang contributed 1,709 bpd of oil and 200 mmscfd of gas. The Jatibarang field contributes 6,000 bpd and gas 50 mmscfd.

"Revenue is actually the largest of the gas that is almost 80 percent," he said.

He said the contribution of oil and gas production of Asset 3 to the holding company of PT Pertamina EP is small. However, in detail, the contribution of gas production to the parent company is ranked second after Field Prabumulih Asset 2. Meanwhile, if revenue is seen, Asset 3's revenue contribution is second.

Field Manager of PT Pertamina EP Asset 3 Subang Mel Hukom added that his side is conducting exploration (development) of wells in Bambu Besar field and will be executed in October 2017.

IN INDONESIA

Juli, Produksi Minyak Pertamina EP Asset 3 Capai 10.000 Bph

Per Juli, produksi rata-rata PT Pertamina EP Asset 3 sekitar 10.000 barel per hari (bph) untuk minyak dan produksi gas rata-rata mencapai 300 juta kaki kubik per hari/mmscfd. Dengan sejumlah sumur pengembangan, diharapkan hingga akhir tahun ini produksi minyak bisa meningkat. 

“Hingga akhir tahun kami harapkan produksi minyak naik jadi 11.000 bph, sementara gas di kisaran 300 mmscfd,” kata GM PT Pertamina EP Asset 3 Wisnu Hindadari, dalam keterangan yang diterima, Kamis (24/8).

Dia mengatakan produksi Pertamina EP Asset 3 per Juli disumbangkan oleh field Tambun sekitar 2.200 bph minyak dan 50 mmscfd gas. Sementara Field Subang menyumbang 1.709 bph minyak dan 200 mmscfd gas. Adapun field Jatibarang menyumbang 6.000 bph dan gas 50 mmscfd. 

“Pendapatan justru terbesar dari gas yakni hampir 80 persen,” kata dia.

Dia mengatakan, kontribusi produksi migas Asset 3 terhadap induk usaha PT Pertamina EP tergolong kecil. Namun jika dirinci, kontribusi produksi gas kepada induk usaha di peringkat kedua setelah Field Prabumulih Asset 2. Sementara jika dilihat pendapatan, kontribusi pendapatan Asset 3 di urutan kedua.

Field Manajer PT Pertamina EP Asset 3 Subang Mel Hukom menambahkan, pihaknya sedang melakukan eksplorasi (pengembangan) sumur di lapangan Bambu Besar dan akan dieksekusi pada Oktober 2017.

Investor Daily, Page-15, Friday, August 25, 2017